BYD Takes Aim at Japan Kei Car Market
BYD is making its most ambitious push yet into Japan with the Racco, a purpose-built electric kei car developed in roughly two years for a segment unique to the Japanese market, as the Chinese automaker seeks to turn three years of difficult sales growth into a durable presence in one of the world’s most demanding auto markets. (News On Japan)
TOKYO - BYD is making a bold move into Japan's electric kei car market with the Racco, a vehicle designed specifically for the Japanese market after struggling to gain traction in the country's passenger vehicle market. Kei cars make up roughly 40% of Japan's annual new-vehicle market, totaling around 1.66 million vehicles. The Racco competes with domestic brands like Honda's N-Box, which is one of the best-selling kei cars in Japan.
Developing the Racco took about two years, with the company reportedly selecting the development team through an internal competitive process. The vehicle features a new electrical architecture, placing the motor and reduction gear under the hood while integrating other major components, such as the inverter, with the battery pack. This design provides a larger crumple zone and improves collision safety.
The Racco is available in three grades, with prices ranging from 2.14 million yen to 2.49 million yen. With national EV subsidies applied, the entry model can be purchased for around 1.99 million yen. The vehicle includes features such as power sliding doors, a 10.1-inch center display, telescopic steering column, front and rear disc brakes, tire-pressure monitoring, and an around-view camera system.
Testers found the Racco to have a quiet and smooth acceleration, as well as good stability on winding roads. Its tall, super height class design presents design challenges, but BYD's engineering approach resulted in a more innovative solution compared to traditional Japanese automakers. The development of the Racco has attracted attention, with the vehicle reaching the market about two and a half years after the decision to proceed, thanks to BYD's rapid decision-making and simultaneous process running.
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